Secondhand Car Market Collapse?

[JMI]

This is very sad I know but I've been monitoring prices for about 6 months (only because I need a new car and I want an M5 for my midlife crisis). So I've noticed some shift down in prices a few wobbles perhaps 1-2% but nothing that significant. What I really want is a good 10% slash.

Given all the money tied up by car dealers in stock, sat on forecourts devaluing every day, with less liquidity, people holding on cash due to uncertainty, people driving less due to working from home and then compounded by the fact gov announced new cars and vans powered wholly by petrol and diesel will not be sold in the UK from 2030. I would have thought it a bloodbath by now - whats propping it up?

 

[dazc]

People not wanting to use public transport has led to a surge in demand for second hand cars. There is also a lot of free money sloshing around, hence demand for M5s and such going up, not down.

Re your midlife crisis. People who care what car you drive are generally not worth bothering with.

 

[ian]

There has been a seismic shift in buying patterns from new to used, a reverse of what we've experienced in the past decade. This is down to limited production of new vehicles and an overwhelming desire for consumers to swap out their cars, perhaps with the view to buying now, whilst they still have a wage (or can get finance), at a comparable discount on new etc. My pursuit of a new family wagon has been a challenge to say the least; so little in terms of stock, base models only, and even less interested dealers for whom a bizarre 'click and collect' service is working for them!!!

 

[bensd]

A friend of mine runs a car dealership and this year they haven’t been able to get enough used cars to sell, he’s been manic with sales.

 

[rob]

"with less liquidity, people holding on cash due to uncertainty"

Go look at the price of second hand vans if you want a shock...! Was helping a friend roll out a digital op with a delivery element and that was an eye opener.

Most recently some in hospitality have more cash in the bank than ever before, other sectors are sloshing about in cash too. Add on cbils etc on top, there are elements of UK that have done very well, and have more liquidity than ever before.

Houses flying off rightmove in last few months, people have cash and nowhere to put it and banks giving you sod all.

The youtube algo world is not the real world

 

[diablo]

Thread title got me all excited there as I'm looking to buy a Mini Clubvan. Then Rob chips in with price of secondhand vans (presumably rising). Maybe not the time to buy

 

[JMI]

Garages and forecourts around here look dead, I also see the same motors on Auto Trader 9 months later still rotting on forecourts around the country, but interesting replies, I'm a bit surprised how optimistic you all are I guess its nearly Christmas, but we will see real impact next year when dust settled.

 

[donton]

I can’t help with predictions about when the arse will fall out of the market, but I can assure you that you’ll have a cracking time in an M5.

Best car I’ve ever had and insanely fast. Sounded like an earthquake every time I put my foot down. What a car.

 

[martin-s]

Prices might crash a little harder when redundancies really start kicking in. There must be huge numbers of HP car agreements at risk of default at that point.

 

[ian]

All M5's have been under appreciated. I've had the fortune to drive the latest M5 and despite it lacking 'emotion' of current emission rules, it is outstanding. Whilst BMW have caught up with other manufacturers in the last couple of years, most of their models still look ugly as sin; the M5 is an exception because it doesn't have the huge nostrils

 

[mrh]

There is also the lack of new cars been produced = higher rates for second hand.

It means they will not be sending a million+ cars into the rental market next year so again this will help keep second hand prices high for some time.